ANAS Sarwar defended Labour’s approach to energy policies last night, following warnings from top executives in the North Sea that jobs and investments are at risk.
The leader of Scottish Labour, along with First Minister John Swinney and Scottish Conservative leader Douglas Ross, participated in a special energy debate organised by the Aberdeen & Grampian Chamber of Commerce and hosted by the University of Aberdeen.
It was a far-reaching discussion covering some hugely important issuessuch as the future of the North Sea, the shift towards renewable energy, planning, Great British Energy, and the impact of energy on food security, fishing, and higher education.
Despite differing views, the debate moderator, Callum Macdonald from Times Radio, managed to find common ground on areas where both the Scottish and UK governments could collaborate, including infrastructure and green energy approvals.
However, with the announcement of plans to increase the oil and gas windfall tax, eliminate investment allowances, and ban future drilling, much of the discussion centered on Labour’s strategy should Sir Keir Starmer become the next Prime Minister.
Mr. Sarwar emphasized his party’s goal to form a strategic alliance with the industry to spearhead a green energy revolution in the North-east. He stated that a public energy company, Great British Energy, would generate tens of thousands of jobs by utilizing Scotland’s natural resources to fund public services.
But he was challenged by senior oil and gas figures who had travelled from around the UK to take part in the debate.
Martin Copeland, the Chief Financial Officer at Serica Energy, which produces around 5% of the UK’s gas each day, said the fiscal regime put forward by both Labour and the Conservatives seemed designed “to kill off the vital investment needed to keep the North Sea taps flowing”.
Jillian Owen, UK Country Manager at Apache, also voiced concerns, warning that production is already falling and that jobs are going.
Mr Sarwar said he rejected analysis from the Chamber and investment bank Stifel that up to 100,000 jobs are at risk, insisting that Great British Energy would lead to the creation of 69,000 jobs in Scotland.
“I’ll be blunt about it, I don’t accept that (jobs) figure,” he said.
“I make no attempt to hide the fact that we don’t support new oil and gas licences. I make no attempt to hide the fact that we want to extend the windfall tax if we win the election.
“But these are just two elements in a broader plan, which is about building a genuine partnership and bringing investment here.
“I am confident that our plan will create 69,000 more jobs here in Scotland and collaboration towards a green energy future.”
Pressed by Mr Ross on whether these were new jobs, or in place of oil and gas jobs lost, Mr Sarwar fought back, claiming that the North Sea workforce had halved under the Conservatives.
Mr Swinney questioned whether the extension of the Energy Profits Levy would be effective in generating additional revenue, and said the UK needs energy companies to recycle profits into the transition.
He said: “We need the oil and gas sector to be able to make a contribution towards the transition to renewables – it cannot be funded by the state, it’s just not possible.
“I would not extend the Energy Profits Levy beyond 2028 and I would not support its increase.”
Mr Ross hit out at the “continued negativity” against the oil and gas sector, which he said is turning people off working in the North Sea.
He claimed the SNP, if it does back a presumption against oil and gas licences in its delayed energy strategy, and Labour, with its plans for no new licences, would force oil and gas workers to go overseas, stripping the UK of the supply chain it needs to deliver net zero.
